There is a little bit more to it. Amongst other things VIP opens up craft guilds (which are very good if you want to craft and you will want to) and the ettenmoors for freeps (there is just one PvP area in LotrO, where monsters fight free peoples, if you are non-VIP you can only enter as a monster) this last thing is not even buyable with TPs so exclusively for VIPs.
Sadly, Update 37 has come and obviously zero attention has been given to this matter. I recall when Severin said that more VIP perks were coming soon and that was over a year ago on Cord of the Rings. This would be a great way to start, by showing us some gold gift appreciation instead of a slap in the face almost every Thursday!
Here's how: 1. Log into the server where you plan to undergo the change. For the guide, we have created a dwarf named ChangeGuide. Say hello: 2. Open the LOTRO Store and purchase the Character Race Change. 3. Open your inventory and interact with the Character Race Change Token.